In a typical electronic credit-card-based transaction, a customer (the “customer”) purchases from a merchant or service provider (“the merchant”) goods or services (“the goods”) using credit. The customer and the merchant exchange transaction information via a series of web pages. The merchant provides the customer with a web form. The customer provides the merchant with customer information and billing information. The customer information typically includes identity information. The billing information typically includes financial institution account information.
When the transaction is based on credit, the credit is extended to the customer by an issuing bank (the “issuer”). The merchant presents a debit to an acquiring bank (the “acquirer”). The acquirer pays the merchant for (and thus “acquires”) the goods. A transaction processing network in communication with the issuer and the acquirer settles the transaction between the issuer and the acquirer. The transaction processing network may collect transaction processing network fees from the issuer and the acquirer in connection with the settlement.
The issuer may impose upon the acquirer a fee for participating in the transaction. The fee may be referred to as “interchange.” Interchange may be a fixed fee for the transaction or a percentage of the transaction. Interchange flows from the acquirer, through the transaction processing network, to the issuer. The issuer typically uses interchange to cover costs of acquiring credit card customers, servicing credit card accounts, providing incentives to retain customers, mitigating fraud, covering customer credit risk, group comp and other expenses.
The acquirer may deduct a “transaction fee” from the amount that the acquirer pays the merchant in exchange for the goods. The transaction fee may cover the acquirer's transaction processing network fee, interchange, and other expenses. The acquirer may obtain a profit from the transaction fee.
FIG. 1 shows typical credit card transaction settlement flow 100. Flow 100 involves transaction participants such as a merchant, a customer, and transaction service providers that are identified below.
At step 1, the merchant provides transaction information related to a proposed transaction between the merchant and a customer to a transaction authorization and clearance provider. The transaction authorization and clearance provider may provide transaction authorization and clearance information to the merchant. The transaction authorization and clearance information may include authorization for the transaction to proceed.
At step 2, the merchant provides $100 in goods to a customer. The customer pays with a credit card.
At step 3, the issuer transmits to the customer a statement showing the purchase price ($100.00) due. The issuer collects the purchase price amount, along with interest and fees if appropriate, from the customer.
At step 4, the issuer routes the purchase price amount ($100.00) through the transaction processing network to the acquirer.
At step 5, the acquirer partially reimburses the merchant for the purchase price amount. In the example shown in FIG. 1, the partial reimbursement is $98.00. The difference between the reimbursement amount ($98.00) and the purchase price amount ($100.00) is a two dollar ($2.00) transaction fee.
At step 6, the acquirer pays an interchange amount ($1.50), via the transaction processing network, to the issuer.
At step 7, both the acquirer and the issuer pay a transaction processing network fee ($0.07 for acquirer and $0.05 for the issuer) to the transaction processing network.
Transaction processing networks and transaction processing network services offered under the trademarks VISA, MASTERCARD, NYCE and PULSE are known. Transaction processing networks typically set interchange rates. Interchange rates often depend for each transaction processing network on merchant type and size, transaction processing method and other factors. Some transaction processing networks set rules that prohibit merchants from charging an incremental fee for credit card payments, establishing minimum or maximum purchase price amounts or refusing to accept selected cards.
The merchant typically requires customer and billing information that is nearly the same as that required by other merchants. Customers that shop online typically shop using websites provided by several different merchants. Each transaction requires the customer to enter customer and billing information that is in whole or in part the same as the customer and billing information that is required for other merchants. Provision of wholly or partially identical information to different merchants is time-consuming and prone to error.
An individual may use a virtual identification cards to electronically provide identity information to another party. Typically, such a card includes one or more “claims” that assert facts about the individual's identity or other aspects of the individual's life. The claims may be presented to the other party's web site by running a “selector” application on the individual's communication device. The claims may be presented to different other parties by presenting the card to the parties. It may be unnecessary to key in the claim information for each of the other parties' web sites. Virtual identification cards, however, do not provide for the execution of a transaction.
It would therefore be desirable to provide apparatus and methods for exchanging transaction information in a more efficient and reliable manner.